Solana experienced a remarkable $1 billion increase in stablecoin value throughout December, with the majority of the inflow attributed to USD Coin (USDC), according to data from DefiLlama.
This growth underscores the rapid adoption of stablecoins and highlights Solana’s emergence as a key player in decentralized finance (DeFi) during 2024.
The Solana network now boasts approximately $5 billion in stablecoin total value locked (TVL), with USDC accounting for nearly $4 billion of this sum. Tether’s USDT follows as the network’s second most popular stablecoin, contributing close to $1 billion in TVL.
Stablecoins Gaining Traction
As of December 31, the total market capitalizations for USDT and USDC across all blockchain ecosystems were estimated at $137 billion and $44 billion, respectively, based on CoinGecko data.
Stablecoin valuations surged significantly after Donald Trump secured his victory as President-elect in November. Many analysts, suggest that this outcome could prove advantageous for the cryptocurrency industry.
Since November, the top three stablecoins—USDT, USDC, and Dai—have collectively added over $25 billion in market capitalization, according to a December 26 report from Citi. Stablecoins are increasingly seen as a critical gateway for users entering the DeFi space, Citi noted, describing them as the “on-ramp to decentralized finance.”
A Rising Competitor to Ethereum
Solana has firmly positioned itself as a noteworthy alternative to Ethereum, particularly in DeFi and other smart contract-driven applications.
Since 2023, Solana’s native token, SOL, has outpaced Ether (ETH) in performance, achieving roughly 8x returns, according to TradingView data. Over the course of 2024, Solana’s TVL multiplied nearly fivefold, climbing from $1.4 billion to over $8.6 billion, DefiLlama reported.
Grayscale Research highlighted growing retail interest in Solana, citing speculative trading activity in Solana-based memecoins and AI-driven tokens. On December 30, Grayscale added Jupiter and Jito, two Solana-native DeFi applications, to its “top tokens to watch” list for Q1 2025.
Jito, a staking pool built on Solana, achieved monthly revenues exceeding $100 million in November and December, driven by priority fees and tips, according to insights from Kairos Research.
Despite Solana’s impressive growth, Ethereum continues to dominate the stablecoin landscape with over $110 billion in TVL as of December 31, according to DefiLlama.
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